The Office of the Comptroller of the Currency reported on the performance of first-lien mortgages in the federal banking system during the second quarter of 2026. According to the OCC Mortgage Metrics Report, Second Quarter 2026, 97.7 percent of mortgages included in the report were current and performing at the end of the quarter, an increase from 97.5 percent in 2025. The report covers approximately 10.1 million loans totaling $2.6 trillion in principal balances, representing about 18.8 percent of all residential mortgage debt outstanding in the United States.
The percentage of seriously delinquent mortgages—those 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due—decreased from the second quarter of 2025. However, servicers initiated 7,904 new foreclosures in the second quarter of 2026, an increase from both the previous quarter and a year earlier. Servicers also completed 7,349 modifications during the quarter, a 16.5 percent increase from the previous quarter's 6,308 modifications. Of these, 7,107, or 96.7 percent, were combination modifications that included multiple actions affecting loan affordability and sustainability, such as an interest rate reduction and a term extension.
The data suggests a mixed credit picture: overall mortgage performance improved slightly year over year, but the rise in new foreclosures and the increased use of combination modifications indicate that pockets of borrower stress persist. The heavy reliance on combination modifications—nearly all completed modifications—points to servicers using multi-part loan restructurings to address affordability challenges rather than simpler, single-action fixes.
What remains unknown is whether the increase in new foreclosures represents a temporary adjustment or the start of a broader trend, and how the seriously delinquent mortgage rate compares in absolute terms to prior quarters. The report provides information through June 30, 2026, and does not include data on mortgages outside the federal banking system, leaving the performance of the broader residential mortgage market outside the OCC's covered portfolio unaddressed.